Does it seem possible that more than two months have already passed since the 2017 tax season ended? That means the 2018 tax season is not that far away, and now is a good time to make your tax plan for this year’s return.
Tax plans come in all shapes and sizes because no two taxpayers have the exact same situation. However, there are a few common tips that can help any taxpayer prepare his or her next tax return, especially if they want to save a little more on taxes.
- Tax Harvesting – We’ve discussed tax harvesting before, but it never hurts to repeat sound advice. This is a great way to reduce your tax hit by selling off investments that have a loss. This will help offset any gains you have and ease your tax burden.
- IRA Contributions – While you can wait all the way util April of next year to contribute to your IRA, you don’t have to. Plus, whatever you add to your Roth IRA will be tax-free income when it comes time to withdraw it.
- Maximize Long-Term Gains – If you happen to be in the 15 percent tax bracket, you get to enjoy your long-term investment gains tax-free. Therefore, take the time to study and estimate your future investment taxes and look for chances to save each year.
These are just a few of the tips you can implement in your 2107 tax plan, or any other year, to help get prepared and save some money. Please feel free to speak with our tax experts at GROCO for more help.